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14 accused in bid rigging scheme

A group of Ottawa-based information technology companies are facing criminal charges for rigging bids for $67 million worth of Government of Canada contracts following an investigation by the Competition Bureau.

A group of Ottawa-based information technology companies are facing criminal charges for rigging bids for $67 million worth of Government of Canada contracts following an investigation by the Competition Bureau.

In total, 14 individuals and seven companies are accused of secretly co-ordinating their bids in an illegal scheme to defraud the government by winning and dividing contracts, while blocking out other competitors.

The bureau’s investigation found evidence of criminal activity in 10 competitive bidding processes going back to 2005, for contracts worth roughly $67 million. Eight of the contracts, worth $62 million, relate to IT services for the Canada Border Services Agency. The other two contracts are for IT services for Transport Canada ($4 million) and Public Works ($1 million).

Over the course of the bureau’s investigation, officers searched 10 locations, including head offices and homes, and seized over 125,000 paper and electronic records.